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Selling coins as a collector?
stevepk
Posts: 238 ✭✭✭
As a collector, what is the best way to sell coins? The differences between someone such as myself (a collector) and a dealer are:
1. collector doesn't have millions of dollars in high-end inventory
2. collector probably paid closer to retail than wholesale as a dealer typically would
3. collector already has a full-time job and cannot put forth the same effort as a dealer
4. collector does not have an established reputation like some dealers
Although I am a collector, I do not want to lose my shirt on my coins if and when I decide to sell. As expected, it would be nice to get as much as I can for my coins. My options are:
1. brick and mortar coin shop, likely to have a very low offer as the owner needs to 'rip' you for a strong profit
2. Craigs List, however, everyone is looking to 'rip' a recent widow holding onto a fortune without the slightest clue
3. sell to a dealer at a show who will offer low enough so that he can make a profit on resell
4. Ebay less Paypal, Ebay, and shipping fees
5. PCGS forum with the risk associated with selling to strangers online
6. Heritage (but only if your entire inventory consists of high-end certified coins)
7. coin club auction and coin club contacts (if a local coin club exist)
8. pawn shop, although they will only offer 50% of melt regardless of numismatic value
9. sell to a specialist or perhaps consign to a specialist (less, of course commission fees)
10. auction sites other than Ebay
What is the best method for a collector to get the most money for his coins? I know variables play a factor, so I will highlight a few points about my collection:
1. 80% of the collection's value is certified by PCGS, NGC, or ANACS, remaining 20% is raw
2. mostly early 20th century and 19th century United States coins
3. coins are problem-free and eye appealing
4. coins are relatively low in value with most under $1,000 apiece and many under $200
1. collector doesn't have millions of dollars in high-end inventory
2. collector probably paid closer to retail than wholesale as a dealer typically would
3. collector already has a full-time job and cannot put forth the same effort as a dealer
4. collector does not have an established reputation like some dealers
Although I am a collector, I do not want to lose my shirt on my coins if and when I decide to sell. As expected, it would be nice to get as much as I can for my coins. My options are:
1. brick and mortar coin shop, likely to have a very low offer as the owner needs to 'rip' you for a strong profit
2. Craigs List, however, everyone is looking to 'rip' a recent widow holding onto a fortune without the slightest clue
3. sell to a dealer at a show who will offer low enough so that he can make a profit on resell
4. Ebay less Paypal, Ebay, and shipping fees
5. PCGS forum with the risk associated with selling to strangers online
6. Heritage (but only if your entire inventory consists of high-end certified coins)
7. coin club auction and coin club contacts (if a local coin club exist)
8. pawn shop, although they will only offer 50% of melt regardless of numismatic value
9. sell to a specialist or perhaps consign to a specialist (less, of course commission fees)
10. auction sites other than Ebay
What is the best method for a collector to get the most money for his coins? I know variables play a factor, so I will highlight a few points about my collection:
1. 80% of the collection's value is certified by PCGS, NGC, or ANACS, remaining 20% is raw
2. mostly early 20th century and 19th century United States coins
3. coins are problem-free and eye appealing
4. coins are relatively low in value with most under $1,000 apiece and many under $200
0
Comments
I give away money. I collect money.
I don’t love money . I do love the Lord God.
You could also add Teletrade and Great Collections as options.
There is no one-size-fits-all solution. What will work for you depends on specifically what you have, what you want to get for it, and how much work you want to sell the coins.
I would take issue with your idea that selling coins on the forum has much risk associated with it. I have bought and sold many, many coins, ranging from under $5 to over $3000 with never a problem.
Consignment to an Ebay seller or one of the auction houses, is one of the better options for a novice seller. It will take some time, but the labor is minimal. For those that always wanted to play dealer, setting up at a small local show might be an interesting option.
Another good option is to sell to the dealer(s) where the person bought the coins. This is one of the better options, because the dealer likely remembers the coins, knows their authenticity and quality, might even remember what he sold them for. A walk up unknown seller at a show or shop, is almost always going to get a lower offer than a long time good and steady customer. Relationship building is a keystone to financial success in the hobby, and is an area that many coin investors neglect.
As for losing one's shirt, it may already be lost, though a person can mitigate the losses, or perhaps toss the shirt in the ditch because the loss is so great. Those that paid full boat retail will have have a tough time getting out even, unless that person has a truly exceptional eye for quality plus some luck. Those that bought raw low value coins to fill an album tend to have an especially big hill to climb because the wholesale/retail spreads tend to be very wide on that kind of material.
As described, I'd vote for consigning the entire collection to one or more Ebay consignment dealers that are members of the forum. The work involved is minimal. The consignment dealers tend to have a following and their fee will pay for itself in higher bids. Yes, some money is left on the table, but considering the amount of work involved in some other options, that is money is well spent. BST (buy sell or trade forum) is a decent option for some, but I would not go that route for someone with 14 posts in seven years. There have been a number of high profile scam attempts on BST and word gets around.
Things to keep in mind.
1. EB fees are cheapest if you go with a Buy it Now on items $120-$2850 EBay/Paypal fee calculator
2. Communication and promptness with buyers will bring them back for more
3. Shipments over $700 are cheaper if sent registered insured (slower, but much safer)
Paypal seller protection (it is great and it works if you follow these rules):
4. Never ship until the paypal details pages for the transaction shows paid, OK to ship and eligibile for seller protection. Some payments do not get this right away so wait for it.
5. Always ship to the address on the PP details page regardless of what a buyer requests.
6. Always have delivery confirmation for items under $250 and signature confirmation for items $250 and greater.
7. You can print shipping labels and pay postage directly from the PP details page. Print on plain bond paper and tape to package, never tape over one of the two barcodes.
8. Learn your way around ebay. You can search completed auctions on particular items to get a feel what your goodies are currently selling for.
9. You can transfer your paypal balance free, at any time to your bank account.
9. Keep good records of cost, fees and sale price. In your case best to claim the income on a Schedule D as investment income.
Good luck, and keepa ya hands offa my regular customers.
Give Me Liberty or Give Me Debt
<< <i>I suggest you give ebay a go. You can't beat the convenience of doing it all from home (except for the trip to the post office).
Things to keep in mind.
1. EB fees are cheapest if you go with a Buy it Now on items $120-$2850 EBay/Paypal fee calculator
2. Communication and promptness with buyers will bring them back for more
3. Shipments over $700 are cheaper if sent registered insured (slower, but much safer)
Paypal seller protection (it is great and it works if you follow these rules):
4. Never ship until the paypal details pages for the transaction shows paid, OK to ship and eligibile for seller protection. Some payments do not get this right away so wait for it.
5. Always ship to the address on the PP details page regardless of what a buyer requests.
6. Always have delivery confirmation for items under $250 and signature confirmation for items $250 and greater.
7. You can print shipping labels and pay postage directly from the PP details page. Print on plain bond paper and tape to package, never tape over one of the two barcodes.
8. Learn your way around ebay. You can search completed auctions on particular items to get a feel what your goodies are currently selling for.
9. You can transfer your paypal balance free, at any time to your bank account.
9. Keep good records of cost, fees and sale price. In your case best to claim the income on a Schedule D as investment income.
Good luck, and keepa ya hands offa my regular customers.
All things considered, Ebay is pretty good. Their fees may seem high, but there's no other venue where you can reach an audience of the same size so conveniently.
I recently looked into a small local auction to sell some of my stuff. Considering the truly dreckish stuff they have been selling (eg, crap I wouldn't even want to buy for face value) and the prices realized, I thought it might be worth a shot. Talked to the guy and he charges a 10% buyer's premium AND 25% seller fees. For my $15-200 coins Ebay is definitely the way to go. I am still hoping he'll take a boatload of my modern dreck that even ebayers scoff at.
Or can be, once you've developed a track record with one or two good references. As to the risk of selling to strangers online, well heck, you'd be doing that on eBay anyway. Or just about anywhere else. Unless you are VERY specialized with a tight core group of colleagues around you waiting to snap up all your castoffs, you're gonna have to go into the wider world and deal with strangers. In my experience, the BST is better.
But of course for maximum exposure, you can always list coins on eBay and then link 'em up to the BST and potentially get the best of both worlds.
Only if you're a whale or high-end bigshot would I go with the traditional auction houses. A lot of it depends on what kind of stuff you are selling.
But in my decade of experience, I tend to like BST the best. Or eBay for my world coins, since nobody beats the global reach of eBay.
<< <i>set up a table at coin shows >>
Probably need a biz. liscence and a seller permit and tax number.
1. Having represented several pawn shops over the years, I would not sell to a pawn shop, primarily because I think they offer less than others;
2. I myself would not sell on Craig's list for security reasons;
3. B & M shops and coin shows present some problems for the relative newbie in that they require you to make a fairly quick, on the spot decision on an offer. I would not sell to a shop or at a show unless I trusted the dealer and/or new exactly what I wanted for a particular item. I also would not bring in an entire collection to sell at once to a show or to a dealer, again, unless I knew and trusted the individual. I have recommended to folks who are considering selling and who are unsure of their coins' value to pay for a written appraisal of their holdings, for insurance purposes. In that way, you at least know the insurance value of your holdings and you can work your way down from there. All of that said, I have had some wonderful success selling to dealers I trust, both at shows and at shops, and I am doing more of this recently than my other favorite way of selling (consignment);
4. Ebay is a good venue, but it is very time consuming to do it yourself. In general, consigning to a respected ebay seller is money well spent and time well saved;
5. Auctions can be good venues, but for the items you describe, my sense is that your coins will not get the attention that (you think) they merit (and you may be right);
6. I have had the best success with consignments since it saves me time and it generally allows me to set a price (reserve) I am comfortable with.
7. Time is your friend. The more time you have, in general, the better you will do.
8. I have not sold on the forum but in general I think it is a good idea with less cost and less risk than other venues, and I have had successful purchases on the forum.
All of the above are just my opinions. Good luck.
Tom
Wondercoin
MY COINS FOR SALE AT https://www.pcgs.com/setregistry/collectors-showcase/other/bajjerfans-coins-sale/3876
<< <i>The best way for a collector to get the most money for his coins is to trade all that he has for ONE great coin. Then stash that baby. You'll see ! >>
Assuming you don't need money from the sale of your coins, this is definitely an appealing way to go and works well. I've done it before with excellent results.
i would not use Craigs list for anything. I have not yet tried Greatcollections, but have heard good things about them.
Selling at auction exposes your coins to the most qualified buyers. Even if you get 10 quotes from 10 different dealers, that is 10 different eyes and numbers. By selling at auction, you're showcasing your coins to 1,000s of coin collectors, dealers, investors and so forth.
I usually recommend clients to talk to local dealers, talk to auction houses and work out what is best for them. When selling at auction, ask about commission rates (buyer's and seller's fees), how your items will be lotted, any buyback/reserve fees, when they will be sold and when to expect a check - at least those are the main questions that come to mind. You can check recent prices realized... this is extremely useful.
- Ian
Owner/Founder GreatCollections
GreatCollections Coin Auctions - Certified Coin Auctions Every Week - Rare Coins & Coin Values
<< <i>
<< <i>set up a table at coin shows >>
Probably need a biz. liscence and a seller permit and tax number. >>
Fill out couple of forms and you're set.
60 years into this hobby and I'm still working on my Lincoln set!
<< <i>The BST Forum is your friend.
Or can be... >>
I always seem to get the same trolls letting me know that I'm asking "over sheet" -- as if!
60 years into this hobby and I'm still working on my Lincoln set!
<< <i>I highly recommend selling all your slabbed dreck to Greatcollections. The seller fees are 5% on coins under $1,000, & 0% on coins over $1000. And payment arrives within a week or two. One of the best...
Are you saying any coin worth less than $2,000 is 'dreck'? How much does a coin have to be valued to be considered collectible? In my opionion, an eye-appealing, problem-free, AU+ coin from the 19th century in a top-tier slab worth a few hundred dollars is anything but 'dreck'. A piece of 'dreck' in my opinion would be a common date coin with problems in low grade. Then again, I drive a Toyota Corolla. I guess many on this board drive Ferarris and Lamborghinis (one of each if you like both).
Just like TwoSides2aCoin said...Turn your trash into cash and then buy 1 treasure...... just make sure you study up on the high points of all USA coins....Do not just buy anything that looks nice like a proof set as they can also have their problems. Some tend to have the coins get toned and if the coins turn with constant movement, that can also lower the price... Go to the library and get the pic world catalogue or the red coin book and look for USA coins with extremely low mintage.. preferably under 200,000 .This will not take 5 minutes. Remember these coins were minted to supply the entire USA and 200,000 items would not be enough for one for each person in any major capotal city.
Good examples are the 1911s and 1912s wheat pennies. Go for the highest condition as you can afford and dont settle on 2nd best....or if it is long term, go no lower than VF. Remember as well as investors for the top grades, there are the average collectors that need the lower grade to fill the spot in their collections. As i was taught at school these years ( 1911 and 1912 ) were pre WW1 era, a lot of the coins were melted down to make ammunition to my knowledge. They are difficult to find in general.
Zombie thread revival warning.
I'm with Wondercoin here. It all depends on what you have. It sounds like you have nice collectible material which would most likely do well on ebay but might possibly do better to the right dealer. It would pay you to seek out the market makers in the type material you have.
Another consideration if you decide to go the ebay route is how much volume you expect to do. I can't remember the breaking point but the fees are much cheaper if you open an ebay store. Even then the right dealer might pay you more than you will net.
Here is an excellent example that occurred with me recently. I received a call from a dealer I know inquiring how much I would pay for a coin a customer was bringing in to possibly sell him. I told him I needed to see pictures of the coin to make a legitimate offer and he told me he would have pictures in a few days when the customer brought it in. He pressed me for a range and my offer had a high low range of $1000! The dealer emailed me that the customer had changed his mind. The next day the coin showed up in an ebay auction. I bought the coin for very close to my low offer! His ebay and Paypal fees were several hundred dollars also! I would have paid close to my high range sight seen! So in this case the seller left somewhere in the neighborhood of $1000 on the table!
Use ebay with fantastic photos.
Take Great Photos
Get a Great Insurance Policy
Run lots of ads on Craigslist with your home address
Leave the house unlocked and go on a 2 week vacation.
Even though I approach the hobby from a different angle than many, I find posts & responses like these to be very informative and thought-provoking!
I've sometimes asked myself how I would handle a "must-sell" situation.
I hope I or my survivors never have to deal with that question, however. My collection's not worth much, and wouldn't make the difference between food on the table or not, as it might for others with high-value collections. I collect purely for the fun of it, and only to fill Whitman blue folders with raw coins, none of whose value exceeds just a couple bucks at best. Any slab I have (maybe 2 or 3?) has come as a gift from a fellow Forum member, and more interesting than valuable. In most cases, after retailer mark-up, postage fees, etc, I'd probably lose my shirt on anything non-silver (and even on a lot of the silver, depending on whether I bought them at peaks or not). And I wouldn't expect my wife or kids to want to take the time required to inventory/research/sell them.
I started out as a youngster going thru pocket change with my grandparents, and that mindset never changed.The fun was in the pursuit of filling holes & learning history. I don't have the interest or eye for finding oddities, DDO's, etc. These days, I just keep the folders current, as I hope to pass them down thru the generations after I'm gone. There are the rarer, more expensive holes in each folder that I will never attempt (or be able to justify) to buy. I missed out on them as a kid, and that's just how it is. In my mind, the collection is one big "sunk cost". But it's been worth it, as my credo has always been "they just don't make these anymore." The beauty and history of the coins (and the pursuit of possibly "filling just one more hole"), and the memories of time spent with my grandparents searching for coins, going to the old Woolworth's coin counter or Smelter's Row looking thru coffee cans full of "melt-value" dimes & quarters (I wasn't too rich or smart back then, or would have expanded to halves & dollars) has been worth more than the price of admission to the hobby for me. My hope is my kids or grandkids will share this same sense of history & wonder & a connection to me & my interests by holding on to the collection and continuing to update it for THEIR kids, etc......
I marvel at everyone's collections & stories on this Forum, and try to learn as much as I can for knowledge's sake, and even dream of getting 1 each in excellent condition of my favorite types as a "showpiece", but I will always feel out of place at even the local coin shows, as I have more in common with the new YN's than anyone else here or at the shows.
But I wouldn't trade the experience or knowledge gained here for anything........